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THE 80 – 20 RULE

THE 80 – 20 RULE


The Pareto principle (also known as the 80–20 rule,) states that, for many events, roughly 80% of the effects come from 20% of the causes. It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients.”


As an educational business owner, consider some of the following :-
• 80% of problems can be attributed to 20% of causes.
• 80% of a company’s profits come from 20% of its customers
• 80% of a company’s complaints come from 20% of its customers
• 80% of a company’s sales come from 20% of its products
• 80% of a company’s sales are made by 20% of its sales staff


As a school owner, think about how many of the events in your school or educational business agree with the 80-20 Rule ? As a business owner think about how much time “you waste” dealing with the 80% “ things “, such as, poor teachers, complaining students/mothers, ineffective marketing, wasted time on SMS, poor business strategy ( trying to please all the people all the time !!) and poor staff recruitment, to list but a few.


Many of us as small business owners spend far too much time getting bogged down with these 80% “things”. We should all consider the 80-20 Rule and start to work smarter, not harder. In my last Blog, I discussed the use of “Virtual Assistants”. This is one way for you to start working smarter. I will talking more about this on TOKYOREAL in the near future, short videos and interviews. I think we would all agree that our most valuable commodity is “ TIME “ !!


** Please do this one TASK for me everyday for the next 7 working days. ( and onwards thereafter if you find it effective ) – ASK YOURSELF 3 TIMES A DAY ( eg – 10am / 2pm / 5pm )
:- “ Is what I am doing NOW productive ? “ ( in a positive way, creating real value and revenue for your business )


If 80% of the English lessons in Japan are delivered by 20% of the top household name brands, such as ECC, Berlitz, etc, this then further confirms the need for you to become an “niche specialist”, unless you intend taking on the “big boys” , which I don’t advise. Deciding on what niche to specialize in and then learning how “ to own “ that space is a topic for another blog ( coming soon). In the meantime, if you would like to watch some short videos explaining how to create a “ Business Strategy” for your school or business, go to :- and click on the “You Tube” link and check out the playlist – Ian Simpson – mini lectures.


“Extreme Ownership” is a great term used by the Navy Seals, and is necessary when trying to establish yourself as an MTP – mentally tough player or KPI – key person of influence within your niche industry. MORE COMING on MTP and KPI soon on this blog and on the TOKYOREAL sites.


Remember – nowadays, “ YOU ARE WHO GOOGLE SAYS YOU ARE “ !!!!!


By:- Ian Simpson
Churchill Fellow and MTP

THE 80-20 RULE

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